Prof' Simon J' Evenett

1

NAMA negotiations in the Doha Round.
Prof. Simon J. Evenett www.evenett.com
2
Contents of this session.

• The principal negotiating issues.
• Chronology of proposals.
• Discussion of specific proposals.
• Identification and evaluation of potential
  negotiating options.

3
Principal negotiating issues.

• Level of ambition for tariff cutting.
• How to cut tariffsformulas? Request and offer?
• How to give SD and less than full reciprocity.
• How to approach NTBs.
• How to address important issues of interest to
  subsets of the WTO membership.

4
Chronology 1

• Expectations established in the Doha Development
  Agenda.
• June 2003. Girard proposal.
• September 2003. Members want stripped down
  version, but less specificity.
• September 2003-July 2004. No progress.
• July 2004 package. The vehicle.

5
Chronology 2.

• February 2005 submission of African group.
• March 2005 submission of ACP group.
• April 2005 meeting of NAMA group.
  Argentina-Brazil-India proposal.

6
Types of formula

• Tariff independent modalities.
• Rc.
• 33/25 percent cuts in Uruguay Round.
• Linear reduction formulas.
• Rabt0.
• Implications for t0gt(100-c)/b.
• Non-linear formulas.
• Rt02/c.
• Rt02/(abt0).
• Effect of increasing a, b.

7
Percentage cut.
8
Types of formula

• Tariff independent modalities.
• Rc.
• 33/25 percent cuts in Uruguay Round.
• Linear reduction formulas.
• Rabt0.
• Implications for t0gt(100-c)/b.
• Non-linear formulas.

9
Linear Reduction Cut
10
Swiss formulas

• Original Swiss formula.
• t1at0/(at0).
• Rt0/(at0).
• Higher value of a reduces the percentage
  reduction in the original tariff.
• Linkage to overall targets for tariff reductions.
• Still can exempt tariff lines, have longer phase
  in periods, modulates the speed at which the
  bound rate falls, treatment of unbound lines.

11
Swiss formulas with varying levels of ambition.
12
Girard proposal.

• Circulated in June 2003.
• Contains formula for negotiating tariffs.
  Elements
• Contained proposal for sectoral elimination of
  tariffs.
• 8 sectors proposed.
• Additional provisions for developing countries,
  least developed countries, and newly acceded
  countries.
• Notes on non-tariff barriers.

13
Girard proposal on tariff formula

• Contains formula for negotiating tariffs.
  Elements
• Base rate.
• Currently unbound rate.
• Base year.
• Non ad valorem duties.
• HS nomenclature.
• Line-by-line application of formula.

14
Girard proposal on tariff formula

• t1 is final rate.
• t0 is base tate.
• ta is average of base rates.
• B is a coefficient with a unique value to be
  determined by participants.

15
Properties of Girard formula

• Cuts tariffs across all product lines on which
  the formula is used.
• Cuts higher tariffs proportionally more.
• Higher values of B reduce extent of tariff
  cutting.
• B could indicate level of ambition.
• B could be country specific.
• How is B chosen? Is there a single value of B? If
  not, how to allocate countries to B?